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CHINA

• Steady local market; pre-holiday replenishment remains below expectation 
• Bank restrictions, exchange rate continue hitting demand for imports 
• PP market sees better response than PE 

Polypropylene (PP)

Trading activities in the domestic spot market are steady as buyers continue sourcing small quantity at the lower end of the overall price range. Sources reported seeing less pressure on the local PP market given the supply tightness condition, especially following the unexpected shutdown at Zhongtian Hechuang coal-based PP unit. The 350,000 tons/year plant might remain shut for at least 7 days.

Polyethylene (PE)

Meanwhile, demand for PE is weaker. The pre-holiday replenishment activities are not up to the expectation and traders are getting a little wary. “Customers are only interested in discounted cargoes. Effort to maintain prices stable to firmer is not yielding any result at the moment,” a trader commented.

The weakness in the local ground, coupled with the bank restriction and currency exchange issues are hindering demand for import materials. More traders are facing difficulties in obtaining the bank loan to open letter of credit, “And therefore, we only buy small quantity using TT payment method,” a trader said.